The UK financial watchdog has outlined plans for reforms to the mortgage market aimed at widening access to home ownership and unlocking property wealth for later life.
The Financial Conduct Authority said among its priorities were plans to simplify mortgage rules to support more flexible products, review retirement interest-only lending requirements, and promote innovation in advice delivery using data and technology.
A consultation on proposed rule changes will be launched early next year, with the first reforms expected before the end of 2026.
The changes are intended to respond to shifts in working patterns, an ageing population, and growing demand from underserved groups such as the self-employed and first-time buyers.
FCA executive director David Geale said: “We have worked at pace this year to improve outcomes for customers wanting a mortgage. We’ll use insight from consumers and industry to drive further reforms and rebalance risk – helping to widen access to affordable mortgages to meet the needs of consumers today.”
He added: “Reforming the mortgage market can help address the fact that as a society we’re saving too little for later life, yet people have huge wealth tied up in property.”
As part of the roadmap, the FCA will launch a focused market study into later-life lending to consider how the sector can evolve to meet future consumer needs. Terms of reference will be published in the first quarter of 2026.
The announcement follows earlier measures in 2025, including reminders to lenders about flexibility in interest rate stress tests that the regulator said led to several firms widening borrowing options, allowing many customers to access around £30,000 more in mortgage finance.
The FCA noted that despite cost-of-living pressures and higher interest rates, 99% of mortgages taken out since 2014 remain in good standing, underscoring the sector’s resilience.
The regulator said it will continue working with the industry to balance innovation with strong standards of conduct, particularly in areas such as advertising, disclosure and support for financially vulnerable borrowers.